Gold still up...

By IBT Staff Reporter On 07/07/09 AT 9:07 PM

As the week begins, the shiny yellow metal remains appealing in the market similar to the past days as the dollar is still weak and is slightly advancing against the euro and the yen, knowing that the gold and the dollar have an inverse relation. Gold prices are still forming an upside wave and are still increasing as it recorded a high of $906.30 an ounce today being the preeminent alternative investment and a hedge against this fragile dollar.

Now, concerning oil, Saudi Arabia where the oil summit took place, being the world's biggest oil exporter, has decided to produce more oil pumping an extra 200,000 barrels a day, which was much less than expected. In addition to disruptions in Nigerian oil supply, one of the biggest crude producers, and tensions in the Middle East area; all this together raised oil prices to reach more than $136 a barrel and of course supported the incline of gold prices.

The U.S dollar is still floating at a low level against the euro as it is still unclear if the Feds will hike or steady rates and on speculation that house prices released tomorrow will show a drop, consequently that will negatively affect consumer's confidence. Therefore, at the moment, as the green currency remains weak, investors are still guided straight to the shiny metal.